What is History of GST (Goods and Service Tax)
History of GST, Historical Background of GST (Goods and Service Tax). France is the first country in the world, which has implemented GST in 1954. While India is also working on it since many more years ;
The reform process in India’s indirect tax regime was started in 1986 by Vishwanath Pratap Singh with the introduction of the Modified Value Added Tax (MODVAT).
The Goods and Services tax (GST) was first conceptualised and given a go-ahead in 1999 during a meeting between then Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which included three former RBI governors IG Patel, Bimal Jalan and C Rangarajan. Vajpayee set up a committee headed by the then finance minister of West Bengal, Asim Dasgupta to design a GST model.
The Asim Dasgupta committee was also tasked with putting in place the backend technology and logistics (later came to be known as GSTN in 2017) for rolling out a uniform taxation regime in the country.
In 2003, the Vajpayee government formed a task force under Vijay Kelkar to recommend tax reforms. In 2005, the Kelkar committee recommended rolling out GST as suggested by the 12th Finance Commission.
After the fall of the BJP led NDA government in 2004, and the election of a Congress led UPA government, the new Finance Minister P Chidambaram in February 2006 first mooted for a GST rollout by 1 April 2010. However in 2010, with the Trinamool Congress routing CPI(M) out of power in West Bengal, Asim Dasgupta resigned as the head of the GST committee. Dasgupta admitted in an interview that 80% of the task had been done.
In 2014, the NDA government was re-elected into power, this time under the leadership of Narendra Modi. With the consequential dissolution of the 15th Lok Sabha, the GST Bill – approved by the standing committee for reintroduction – lapsed. Seven months after the formation of the Modi government, the new Finance Minister Arun Jaitley introduced the GST Bill in the Lok Sabha, where the BJP had a majority. In February 2015, Jaitley set another deadline of 1 April 2016 to implement GST. In May 2015, the Lok Sabha passed the Constitution Amendment Bill, paving way for GST. However, the Opposition, led by the Congress demanded that the GST Bill be again sent back to the Select Committee of the Rajya Sabha due to disagreements on several statements in the Bill relating to taxation. Finally in August 2016, the Amendment Bill was passed. Over the next 15 to 20 days, 18 states ratified the GST Bill and the President Pranab Mukherjee gave his assent to it.
A 21-members select committee was formed to look into the proposed GST laws.State and Union Territory GST laws were passed by all the states and Union Territories of India except Jammu & Kashmir, paving the way for smooth rollout of the tax from 1 July 2017. There will be no GST on the sale and purchase of securities. That will continue to be governed by Securities Transaction Tax (STT).
The Goods and Services Tax (GST), was launched on the midnight of 30 June 2017 by the Prime Minister of India Narendra Modi. The launch was marked by a historic midnight (June 30-July 1, 2017) session of both the houses of parliament convened at the Central Hall of the Parliament. The session was also attended by high-profile guests from the business and the entertainment industry and the likes of industrialist Ratan Tata. .It was the fifth time in the history of India’s independence that such a midnight session was held there. The other four include: the first, August 15, 1947, declaring India’s independence marked by Nehru’s historic speech Tryst with Destiny; the second, August 15, 1972, celebrating the silver jubilee of India’s independence; the third, August 10, 1992, celebrating the golden jubilee of the Quit India Movement; and the fourth, August 15, 1997: celebrating the golden jubilee of India’s Independence.
Source – wikipedia